Time to Buy Apache Corp (APA)?
09/05/2008 12:00 am EST
Apache Corp. (APA) is an exploration, development and production company of, natural gas, natural gas liquids, and crude oil and has been a darling of the energy analysts.
We've followed Apache for a long time and have been impressed with its steady growth, earnings and longer-term, the tight trading range that usually settles on the 200 day moving average as its major support line. But in March, APA, along with crude oil, began to accelerate to a point that a correction was almost inevitable.
With APA at $130, the stock broke down from a somewhat imperfect head-and-shoulders reversal with a downside objective of $110.
Apache is just below the price objective of the breakdown, is several points above its long-term bullish support line, and has issued two buy signals from our internal proprietary indicator-the Collins Bollinger Reversal (CBR). Positions taken now could prove to be very rewarding.
By Sam Collins of OptionsZone.com